SIIG, Petrochem initiate discussions on potential merger
Saudi Arabian petrochemicals firms Saudi Industrial Investment Group (SIIG) and the National Petrochemical Company (Petrochem) have started talks to discuss a potential merger, both recently announced. “It should also be noted that entering into these discussions does not necessarily mean that the deal will take place between the two parties,” Petrochem clarified.
Boards of both the companies have approved initial discussions to study the feasibility of a merger but no agreement has been reached on any final structure of a merged entity, the companies said in separate statements.
SIIG owns 50 per cent of Petrochem but the two companies are similar in size. The two companies had combined assets of $9.5 billion as of June, Refinitiv data shows. SIIG had total assets of 19.2 billion riyals ($5.12 billion) at the end of June while Petrochem had 16.4 billion riyals in total assets.
Petrochem, whose market capitalisation is $3.7 billion, has a larger market value than SIIG.